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activity based costing

Forums › ACCA Forums › ACCA APM Advanced Performance Management Forums › activity based costing

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by ddnguyen.
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  • November 23, 2012 at 6:37 pm #55671
    anumyunus
    Member
    • Topics: 2
    • Replies: 5
    • ☆

    can somebody please explain me activity based costing from the scratch
    thanks

    November 24, 2012 at 9:49 am #108524
    ddnguyen
    Member
    • Topics: 27
    • Replies: 47
    • ☆☆

    ah you can think simple like that:

    you produce a product A included DM, DL, FOH. so traditionally you know exactly how much DM and DL for product A but FOH you can not so you allocate base on propotion of DM or Dl —-> it is traditional management accounting.

    ABC is different, you will find detailed cost drivers to allocate such as dep expense is value of FA used for product A, electric expense is Kilowat used for product A, factory rental is m2 used for products A, head of department is number of hrs involved in product A…

    you see the different between 2 method and find the ad and dis between 2 methods

    gluck

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